HP Reiterates Skepticism to Xerox Bid as Coronavirus Spreads
March 25 2020 - 5:11PM
Dow Jones News
By Micah Maidenberg
The HP Inc. board said Xerox Holding Corp.'s efforts to merge
the two companies are not appropriate as the coronavirus crimps
economic growth.
"Any complex, large-scale, highly leveraged transaction in the
current economic environment could be disastrous for HP, its
shareholders and our entire ecosystem," the company's board said in
a letter to shareholders Wednesday.
Xerox said on March 13 that it would pause its campaign to take
over HP, postposting presentations and meetings with shareholders
as it focused on responding to the pandemic.
Xerox wants to combine with HP in a proposed $35 billion deal,
but HP has said the bid would benefit Xerox shareholders more than
its own.
It also has said Xerox doesn't have enough operational
experience in HP's markets, including home printing and digital
manufacturing.
The two companies both focus on printing, but in different areas
of that sector, with Xerox known for its large printers and copy
machines.
Xerox believes a deal would yield a combined company that is
able to deal with falling demand for printed documents and has
touted cost savings.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
March 25, 2020 16:56 ET (20:56 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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